Indiana 2024 Regular Session

Indiana Senate Bill SB0260 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	ES0260.1
	2	+	February 22, 2024
	3	+	ENGROSSED
	4	+	SENATE BILL No. 260
	5	+	_____
	6	+	DIGEST OF SB 260 (Updated February 21, 2024 5:20 pm - DI 125)
	7	+	Citations Affected: IC 4-4; IC 6-3.1.
	8	+	Synopsis: Neighborhood and individual development incentives.
	9	+	Defines a "community based organization" as a private, nonprofit
	10	+	corporation whose board of directors is comprised of business, civic,
	11	+	and community leaders, and whose principal purpose includes the
	12	+	provision of low income housing. (Current law limits administration,
	13	+	through a financial institution, of an account to community
	14	+	development corporations.) Provides that: (1) the first $1,500 (rather
	15	+	than $800) is eligible for a state deposit in an individual's account; (2)
	16	+	the allocation, for each account that has been established, for not more
	17	+	than five years, is $3 for each $1 of the first $1,500 (rather than the first
	18	+	$400) an individual deposited into the individual's account; and (3) the
	19	+	amount of the allocation may not exceed $4,500 (rather than $2,400)
	20	+	for each account. Makes various changes to the administration of and
	21	+	procedure for claiming the neighborhood assistance tax credit and the
	22	+	individual development account tax credit. Removes a reference to an
	23	+	obsolete tax.
	24	+	Effective: July 1, 2024.
	25	+	Becker, Leising, Randolph Lonnie M,
	26	+	Tomes
	27	+	(HOUSE SPONSORS — MANNING, LEDBETTER, PORTER)
	28	+	January 16, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
	29	+	January 30, 2024, reported favorably — Do Pass.
	30	+	February 1, 2024, read second time, amended, ordered engrossed.
	31	+	February 2, 2024, engrossed.
	32	+	February 5, 2024, read third time, passed. Yeas 48, nays 0.
	33	+	HOUSE ACTION
	34	+	February 12, 2024, read first time and referred to Committee on Ways and Means.
	35	+	February 22, 2024, amended, reported — Do Pass.
	36	+	ES 260—LS 6546/DI 129 February 22, 2024
1	37		Second Regular Session of the 123rd General Assembly (2024)
2	38		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	39		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	40		additions will appear in this style type, and deletions will appear in this style type.
5	41		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	42		provision adopted), the text of the new provision will appear in this style type. Also, the
7	43		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	44		a new provision to the Indiana Code or the Indiana Constitution.
9	45		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	46		between statutes enacted by the 2023 Regular Session of the General Assembly.
11		-	SENATE ENROLLED ACT No. 260
12		-	AN ACT to amend the Indiana Code concerning taxation.
	47	+	ENGROSSED
	48	+	SENATE BILL No. 260
	49	+	A BILL FOR AN ACT to amend the Indiana Code concerning
	50	+	taxation.
13	51		Be it enacted by the General Assembly of the State of Indiana:
14		-	SECTION 1. IC 4-4-28-1.7 IS ADDED TO THE INDIANA CODE
	52	+	1 SECTION 1. IC 4-4-28-1.7 IS ADDED TO THE INDIANA CODE
	53	+	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	54	+	3 1, 2024]: Sec. 1.7. (a) As used in this chapter, "community based
	55	+	4 organization" means a private, nonprofit corporation whose board
	56	+	5 of directors is comprised of business, civic, and community leaders,
	57	+	6 and whose principal purpose includes the provision of low income
	58	+	7 housing.
	59	+	8 (b) A community based organization shall not be construed to
	60	+	9 have the same powers as a community development corporation.
	61	+	10 SECTION 2. IC 4-4-28-4 IS AMENDED TO READ AS FOLLOWS
	62	+	11 [EFFECTIVE JULY 1, 2024]: Sec. 4. As used in this chapter, "fund"
	63	+	12 refers to an individual development account fund established by a
	64	+	13 community development corporation or community based
	65	+	14 organization under section 13 of this chapter.
	66	+	15 SECTION 3. IC 4-4-28-5, AS AMENDED BY P.L.50-2016,
	67	+	16 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	68	+	17 JULY 1, 2024]: Sec. 5. As used in this chapter, "individual
	69	+	ES 260—LS 6546/DI 129 2
	70	+	1 development account" means an account in a financial institution
	71	+	2 administered by a community development corporation or community
	72	+	3 based organization that allows a qualifying individual to deposit
	73	+	4 money:
	74	+	5 (1) to be matched by the state, financial institutions, corporations,
	75	+	6 and other entities; and
	76	+	7 (2) that will be used by the qualifying individual for one (1) or
	77	+	8 more of the following:
	78	+	9 (A) To pay for costs (including tuition, laboratory costs, books,
	79	+	10 computer costs, and other costs associated with attendance) at
	80	+	11 an accredited postsecondary educational institution or a
	81	+	12 vocational school that is not a postsecondary educational
	82	+	13 institution, for the individual or for a dependent of the
	83	+	14 individual.
	84	+	15 (B) To pay for the costs (including tuition, laboratory costs,
	85	+	16 books, computer costs, and other costs) associated with an
	86	+	17 accredited or a licensed training program that may lead to
	87	+	18 employment for the individual or for a dependent of the
	88	+	19 individual.
	89	+	20 (C) To purchase a primary residence located in Indiana for the
	90	+	21 individual or for a dependent of the individual or to reduce the
	91	+	22 principal amount owed on a primary residence located in
	92	+	23 Indiana that was purchased by the individual or a dependent of
	93	+	24 the individual with money from an individual development
	94	+	25 account.
	95	+	26 (D) To pay for the rehabilitation (as defined in IC 6-3.1-11-11)
	96	+	27 of the individual's primary residence located in Indiana.
	97	+	28 (E) To begin or to purchase part or all of a business based in
	98	+	29 Indiana or to expand an existing small business based in
	99	+	30 Indiana.
	100	+	31 (F) Subject to section 8(b) of this chapter, to purchase a motor
	101	+	32 vehicle.
	102	+	33 SECTION 4. IC 4-4-28-7, AS AMENDED BY P.L.50-2016,
	103	+	34 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	104	+	35 JULY 1, 2024]: Sec. 7. (a) A qualifying individual, including an
	105	+	36 individual who:
	106	+	37 (1) established an individual development account under this
	107	+	38 chapter before July 1, 2001; and
	108	+	39 (2) held the account described in subdivision (1) for less than four
	109	+	40 (4) years;
	110	+	41 may establish an account by applying at a community development
	111	+	42 corporation or community based organization after June 30, 2001.
	112	+	ES 260—LS 6546/DI 129 3
	113	+	1 (b) At the time of establishing an account under this section, the
	114	+	2 qualifying individual must name a beneficiary to replace the qualifying
	115	+	3 individual as the holder of the account if the qualifying individual dies.
	116	+	4 If the beneficiary:
	117	+	5 (1) is a member of the qualifying individual's family, all funds in
	118	+	6 the account remain in the account; and
	119	+	7 (2) is not a member of the qualifying individual's family, all funds
	120	+	8 in the account provided by the state revert to the state.
	121	+	9 The qualifying individual may change the name of the beneficiary at
	122	+	10 the qualifying individual's discretion. A beneficiary who becomes the
	123	+	11 holder of an account under this subsection is subject to this chapter and
	124	+	12 rules adopted under this chapter regarding withdrawals from the
	125	+	13 account.
	126	+	14 (c) Only one (1) member of a qualifying individual's household may
	127	+	15 establish an account.
	128	+	16 (d) A qualifying individual shall maintain residency in Indiana until
	129	+	17 the individual development account is closed.
	130	+	18 SECTION 5. IC 4-4-28-8, AS AMENDED BY P.L.50-2016,
	131	+	19 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	132	+	20 JULY 1, 2024]: Sec. 8. (a) A community development corporation and
	133	+	21 community based organization shall do the following:
	134	+	22 (1) Determine whether an individual who wants to establish an
	135	+	23 account is a qualifying individual.
	136	+	24 (2) Administer, through a financial institution, and act as trustee
	137	+	25 for each account established through the community development
	138	+	26 corporation or community based organization.
	139	+	27 (3) Approve or deny an individual's request to make a withdrawal
	140	+	28 from the individual's account.
	141	+	29 (4) Provide or arrange for training in money management,
	142	+	30 budgeting, and related topics for each individual who establishes
	143	+	31 an account.
	144	+	32 (b) A community development corporation or community based
	145	+	33 organization may approve a qualifying individual's request to make a
	146	+	34 withdrawal from an account to purchase a motor vehicle if the purpose
	147	+	35 of the purchase is primarily to transport the individual to and from
	148	+	36 work, postsecondary education, or an accredited or licensed training
	149	+	37 program intended to lead to employment of the individual or a
	150	+	38 dependent of the individual.
	151	+	39 SECTION 6. IC 4-4-28-9, AS AMENDED BY P.L.150-2007,
	152	+	40 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	153	+	41 JULY 1, 2024]: Sec. 9. (a) An individual may deposit money from the
	154	+	42 individual's earned income into the individual's account.
	155	+	ES 260—LS 6546/DI 129 4
	156	+	1 (b) An individual may deposit an unlimited amount of money into
	157	+	2 the individual's account, However, only eight hundred of which the
	158	+	3 first one thousand five hundred dollars ($800) ($1,500) annually is
	159	+	4 eligible for a state deposit as provided in section 12 of this chapter.
	160	+	5 SECTION 7. IC 4-4-28-10, AS AMENDED BY P.L.150-2007,
	161	+	6 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	162	+	7 JULY 1, 2024]: Sec. 10. (a) Not more than eight hundred (800)
	163	+	8 accounts may be established in the state each state fiscal year
	164	+	9 beginning before July 1, 2009.
	165	+	10 (b) Not more than one thousand (1,000) accounts may be
	166	+	11 established in the state each state fiscal year beginning after June 30,
	167	+	12 2009.
	168	+	13 (c) A community development corporation and community based
	169	+	14 organization shall use money that is in an individual development
	170	+	15 account fund established under section 13 of this chapter to allow a
	171	+	16 qualified individual on a waiting list maintained by the community
	172	+	17 development corporation or community based organization to
	173	+	18 establish an account.
	174	+	19 SECTION 8. IC 4-4-28-11, AS AMENDED BY P.L.1-2007,
	175	+	20 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	176	+	21 JULY 1, 2024]: Sec. 11. (a) Each community development corporation
	177	+	22 and community based organization shall annually provide the
	178	+	23 authority with information needed to determine:
	179	+	24 (1) the number of accounts administered by the community
	180	+	25 development corporation or community based organization;
	181	+	26 (2) the length of time each account under subdivision (1) has been
	182	+	27 established; and
	183	+	28 (3) the amount of money an individual has deposited into each
	184	+	29 account under subdivision (1). during the preceding twelve (12)
	185	+	30 months.
	186	+	31 (b) The authority shall use the information provided under
	187	+	32 subsection (a) to deposit the correct amount of money into each
	188	+	33 account as provided in section 12 of this chapter.
	189	+	34 SECTION 9. IC 4-4-28-12, AS AMENDED BY P.L.50-2016,
	190	+	35 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	191	+	36 JULY 1, 2024]: Sec. 12. (a) The authority shall allocate, for each
	192	+	37 account that has been established, for not more than five (5) years,
	193	+	38 three dollars ($3) for each one dollar ($1) of the first four one
	194	+	39 thousand five hundred dollars ($400) ($1,500) an individual deposited
	195	+	40 into the individual's account. during the preceding twelve (12) months.
	196	+	41 However, if the amount appropriated by the general assembly is
	197	+	42 insufficient to make the deposits required by this section for accounts
	198	+	ES 260—LS 6546/DI 129 5
	199	+	1 that have been established, the authority shall proportionately reduce
	200	+	2 the amounts allocated to and deposited into each account. The authority
	201	+	3 may allocate three dollars ($3) for each one dollar ($1) of any part of
	202	+	4 an amount above four hundred dollars ($400) an individual deposited
	203	+	5 into the individual's account during the preceding twelve (12) months.
	204	+	6 However, The authority's allocation under this subsection may not
	205	+	7 exceed two four thousand four five hundred dollars ($2,400) ($4,500)
	206	+	8 for each account described in this subsection.
	207	+	9 (b) The authority shall deposit into each account established under
	208	+	10 this chapter the appropriate amount of money determined under this
	209	+	11 section.
	210	+	12 (c) Money from a federal block grant program under Title IV-A of
	211	+	13 the federal Social Security Act may be used by the state to provide
	212	+	14 money under this section for deposit into an account held by an
	213	+	15 individual who receives assistance under IC 12-14-2.
	214	+	16 SECTION 10. IC 4-4-28-13, AS AMENDED BY P.L.50-2016,
	215	+	17 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	216	+	18 JULY 1, 2024]: Sec. 13. (a) Each community development corporation
	217	+	19 and community based organization may apply to the authority for an
	218	+	20 allocation of tax credits under IC 6-3.1-18 for the contributors to a fund
	219	+	21 established under this section. A community development corporation
	220	+	22 and community based organization may establish an individual
	221	+	23 development account fund to provide money to be used to finance
	222	+	24 additional accounts to be administered by the community development
	223	+	25 corporation or community based organization under this chapter and
	224	+	26 to help pay for the community development corporation's or
	225	+	27 community based organization's expenses related to the
	226	+	28 administration of accounts.
	227	+	29 (b) Each community development corporation and community
	228	+	30 based organization shall encourage individuals, financial institutions,
	229	+	31 corporations, and other entities to contribute to the fund. A contributor
	230	+	32 to the fund may qualify for a tax credit as provided under IC 6-3.1-18.
	231	+	33 (c) Each community development corporation and community
	232	+	34 based organization may use up to twenty percent (20%) of the first
	233	+	35 one hundred thousand dollars ($100,000) deposited each calendar year
	234	+	36 in the fund under subsection (b) to help pay for the community
	235	+	37 development corporation's or community based organization's
	236	+	38 expenses related to the administration of accounts established under
	237	+	39 this chapter. All deposits in the fund under subsection (b) of more than
	238	+	40 one hundred thousand dollars ($100,000) during each calendar year
	239	+	41 may be used only to fund accounts administered by the community
	240	+	42 development corporation or community based organization under
	241	+	ES 260—LS 6546/DI 129 6
	242	+	1 this chapter.
	243	+	2 (d) A community development corporation or community based
	244	+	3 organization may allow an individual to establish a new account as
	245	+	4 adequate funding becomes available.
	246	+	5 (e) Only money from the fund may be used to make the deposit
	247	+	6 described in subsection (f) into an account established under this
	248	+	7 section.
	249	+	8 (f) The community development corporation or community based
	250	+	9 organization shall annually deposit at least three dollars ($3) into each
	251	+	10 account for each one dollar ($1) an individual has deposited into the
	252	+	11 individual's account as of June 30.
	253	+	12 (g) A community development corporation or community based
	254	+	13 organization may not allow a qualifying individual to establish an
	255	+	14 account if the community development corporation or community
	256	+	15 based organization does not have adequate funds to deposit into the
	257	+	16 account under subsection (f).
	258	+	17 SECTION 11. IC 4-4-28-15, AS AMENDED BY P.L.1-2007,
	259	+	18 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	260	+	19 JULY 1, 2024]: Sec. 15. (a) An individual must request and receive
	261	+	20 authorization from the community development corporation or
	262	+	21 community based organization that administers the individual's
	263	+	22 account before withdrawing money from the account for any purpose.
	264	+	23 (b) An individual who is denied authorization to withdraw money
	265	+	24 under subsection (a) may appeal the community development
	266	+	25 corporation's or community based organization's decision to the
	267	+	26 authority under rules adopted by the authority under IC 4-22-2.
	268	+	27 SECTION 12. IC 4-4-28-16, AS AMENDED BY P.L.50-2016,
	269	+	28 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	270	+	29 JULY 1, 2024]: Sec. 16. (a) Money withdrawn from an individual's
	271	+	30 account is not subject to taxation under IC 6-3-1 through IC 6-3-7 if the
	272	+	31 money is used for at least one (1) of the following:
	273	+	32 (1) To pay for costs (including tuition, laboratory costs, books,
	274	+	33 computer costs, and other costs) at an accredited postsecondary
	275	+	34 educational institution or a vocational school that is not a
	276	+	35 postsecondary educational institution for the individual or for a
	277	+	36 dependent of the individual.
	278	+	37 (2) To pay for the costs (including tuition, laboratory costs, books,
	279	+	38 computer costs, and other costs) associated with an accredited or
	280	+	39 a licensed training program that may lead to employment for the
	281	+	40 individual or for a dependent of the individual.
	282	+	41 (3) To purchase a primary residence located in Indiana for the
	283	+	42 individual or for a dependent of the individual or to reduce the
	284	+	ES 260—LS 6546/DI 129 7
	285	+	1 principal amount owed on a primary residence located in Indiana
	286	+	2 that was purchased by the individual or a dependent of the
	287	+	3 individual with money from an individual development account.
	288	+	4 (4) To pay for the rehabilitation (as defined in IC 6-3.1-11-11) of
	289	+	5 the individual's primary residence located in Indiana.
	290	+	6 (5) To begin or to purchase part or all of a business based in
	291	+	7 Indiana or to expand an existing small business based in Indiana.
	292	+	8 (6) Subject to section 8(b) of this chapter, to purchase a motor
	293	+	9 vehicle.
	294	+	10 (b) At the time of requesting authorization under section 15 of this
	295	+	11 chapter to withdraw money from an individual's account under
	296	+	12 subsection (a)(5), the individual must provide the community
	297	+	13 development corporation or community based organization with a
	298	+	14 business plan that:
	299	+	15 (1) has been approved by a financial institution or is approved by
	300	+	16 the community development corporation or community based
	301	+	17 organization;
	302	+	18 (2) includes a description of services or goods to be sold, a
	303	+	19 marketing plan, and projected financial statements; and
	304	+	20 (3) may require the individual to obtain the assistance of an
	305	+	21 experienced business advisor.
	306	+	22 SECTION 13. IC 4-4-28-18, AS AMENDED BY P.L.1-2007,
	307	+	23 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	308	+	24 JULY 1, 2024]: Sec. 18. (a) Each community development corporation
	309	+	25 and community based organization shall annually:
	310	+	26 (1) evaluate the individual development accounts administered by
	311	+	27 the community development corporation or community based
	312	+	28 organization; and
	313	+	29 (2) submit a report containing the evaluation information to the
	314	+	30 authority.
	315	+	31 (b) Two (2) or more community development corporations and
	316	+	32 community based organizations may work together in carrying out
	317	+	33 the purposes of this chapter.
	318	+	34 SECTION 14. IC 6-3.1-9-1, AS AMENDED BY P.L.166-2014,
	319	+	35 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	320	+	36 JULY 1, 2024]: Sec. 1. (a) As used in this chapter, "authority" means
	321	+	37 the Indiana housing and community development authority established
	322	+	38 by IC 5-20-1-3.
	323	+	39 (b) As used in this chapter, "business firm" means any business
	324	+	40 entity authorized to do business in the state of Indiana that has state tax
	325	+	41 liability.
	326	+	42 (c) As used in this chapter, "community services" means any type
	327	+	ES 260—LS 6546/DI 129 8
	328	+	1 of:
	329	+	2 (1) counseling and advice;
	330	+	3 (2) emergency assistance;
	331	+	4 (3) medical care;
	332	+	5 (4) recreational facilities;
	333	+	6 (5) housing facilities; or
	334	+	7 (6) economic development assistance;
	335	+	8 provided to individuals, economically disadvantaged households,
	336	+	9 groups, or neighborhood organizations in an economically
	337	+	10 disadvantaged area or provided to individuals who are ex-offenders
	338	+	11 who have completed the individuals' criminal sentences or are serving
	339	+	12 a term of probation or parole.
	340	+	13 (d) As used in this chapter, "crime prevention" means any activity
	341	+	14 which aids in the reduction of crime in an economically disadvantaged
	342	+	15 area or an economically disadvantaged household.
	343	+	16 (e) As used in this chapter, "economically disadvantaged area"
	344	+	17 means an enterprise zone, or any other federally or locally designated
	345	+	18 economically disadvantaged area in Indiana. The certification shall be
	346	+	19 made on the basis of current indices of social and economic conditions,
	347	+	20 which shall include but not be limited to the median per capita income
	348	+	21 of the area in relation to the median per capita income of the state or
	349	+	22 standard metropolitan statistical area in which the area is located.
	350	+	23 (f) As used in this chapter, "economically disadvantaged household"
	351	+	24 means a household with an annual income that is at or below eighty
	352	+	25 percent (80%) of the area median income or any other federally
	353	+	26 designated target population.
	354	+	27 (g) As used in this chapter, "education" means any type of scholastic
	355	+	28 instruction or scholarship assistance to an individual who:
	356	+	29 (1) resides in an economically disadvantaged area; or
	357	+	30 (2) is an ex-offender who has completed the individual's criminal
	358	+	31 sentence or is serving a term of probation or parole;
	359	+	32 that enables the individual to prepare for better life opportunities.
	360	+	33 (h) As used in this chapter, "enterprise zone" means an enterprise
	361	+	34 zone created under IC 5-28-15.
	362	+	35 (i) As used in this chapter, "job training" means any type of
	363	+	36 instruction to an individual who:
	364	+	37 (1) resides in:
	365	+	38 (A) an economically disadvantaged area; or
	366	+	39 (B) an economically disadvantaged household; or
	367	+	40 (2) is an ex-offender who has completed the individual's criminal
	368	+	41 sentence or is serving a term of probation or parole;
	369	+	42 that enables the individual to acquire vocational skills so that the
	370	+	ES 260—LS 6546/DI 129 9
	371	+	1 individual can become employable or be able to seek a higher grade of
	372	+	2 employment.
	373	+	3 (j) As used in this chapter, "neighborhood assistance" means either:
	374	+	4 (1) furnishing financial assistance, labor, material, and technical
	375	+	5 advice to aid in the physical or economic improvement of any part
	376	+	6 or all of an economically disadvantaged area; or
	377	+	7 (2) furnishing technical advice to promote higher employment in
	378	+	8 any neighborhood in Indiana.
	379	+	9 (k) As used in this chapter, "neighborhood organization" means any
	380	+	10 organization, including but not limited to a nonprofit development
	381	+	11 corporation doing both of the following:
	382	+	12 (1) Performing community services:
	383	+	13 (A) in an economically disadvantaged area;
	384	+	14 (B) for an economically disadvantaged household; or
	385	+	15 (C) for individuals who are ex-offenders who have completed
	386	+	16 the individuals' criminal sentences or are serving a term of
	387	+	17 probation or parole.
	388	+	18 (2) Holding a ruling:
	389	+	19 (A) from the Internal Revenue Service of the United States
	390	+	20 Department of the Treasury that the organization is exempt
	391	+	21 from income taxation under the provisions of the Internal
	392	+	22 Revenue Code; and
	393	+	23 (B) from the department of state revenue that the organization
	394	+	24 is exempt from income taxation under IC 6-2.5-5-21.
	395	+	25 (l) As used in this chapter, "person" means any individual subject
	396	+	26 to Indiana gross or adjusted gross income tax.
	397	+	27 (m) As used in this chapter, "state fiscal year" means a twelve (12)
	398	+	28 month period beginning on July 1 and ending on June 30.
	399	+	29 (n) As used in this chapter, "state tax liability" means the taxpayer's
	400	+	30 total tax liability that is incurred under:
	401	+	31 (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); and
	402	+	32 (2) IC 6-5.5 (the financial institutions tax);
	403	+	33 as computed after the application of the credits that, under
	404	+	34 IC 6-3.1-1-2, are to be applied before the credit provided by this
	405	+	35 chapter.
	406	+	36 (o) As used in this chapter, "tax credit" means a deduction from any
	407	+	37 tax otherwise due and payable under IC 6-3 or IC 6-5.5.
	408	+	38 SECTION 15. IC 6-3.1-9-2, AS AMENDED BY P.L.166-2014,
	409	+	39 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	410	+	40 JULY 1, 2024]: Sec. 2. (a) Each state fiscal year, a business firm or
	411	+	41 a person who contributes to a neighborhood organization that engages
	412	+	42 in the activities of providing:
	413	+	ES 260—LS 6546/DI 129 10
	414	+	1 (1) neighborhood assistance, job training, or education for
	415	+	2 individuals not employed by the business firm or person;
	416	+	3 (2) community services or crime prevention in an economically
	417	+	4 disadvantaged area; or
	418	+	5 (3) community services, education, or job training services to
	419	+	6 individuals who are ex-offenders who have completed the
	420	+	7 individuals' criminal sentences or are serving a term of probation
	421	+	8 or parole;
	422	+	9 shall receive a tax credit as provided in section 3 of this chapter if the
	423	+	10 authority approves the proposal of the business firm or person, setting
	424	+	11 forth the program to be conducted, the area selected, the estimated
	425	+	12 amount to be invested in the program, and the plans for implementing
	426	+	13 the program. may apply to the authority for an allocation of state
	427	+	14 tax credits available under this chapter to be used to provide a tax
	428	+	15 credit to a business firm or person that contributes to a program
	429	+	16 involving one (1) or more of the activities described in subdivisions
	430	+	17 (1) through (3).
	431	+	18 (b) The authority, after consultation with the community services
	432	+	19 agency and the commissioner of revenue, may adopt rules for the
	433	+	20 approval or disapproval of these proposals. applications.
	434	+	21 (c) A business firm or a person that contributes to the fund of a
	435	+	22 neighborhood organization that has been approved by the
	436	+	23 authority for an allocation of tax credits as described in subsection
	437	+	24 (a) shall receive a tax credit as provided in section 3 of this chapter
	438	+	25 if the neighborhood organization has agreed to issue a portion of
	439	+	26 the tax credits allocated to the neighborhood organization by the
	440	+	27 authority to the business firm or person.
	441	+	28 SECTION 16. IC 6-3.1-9-3 IS AMENDED TO READ AS
	442	+	29 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) Subject to the
	443	+	30 limitations provided in subsection (b) and sections 4, 5, and 6 of this
	444	+	31 chapter, the department shall grant a tax credit against any state tax
	445	+	32 liability due equal to fifty percent (50%) of the amount invested
	446	+	33 contributed by a business firm or person in a program the proposal
	447	+	34 application for which was approved under section 2 of this chapter.
	448	+	35 (b) The credit provided by this chapter shall only be applied against
	449	+	36 any state tax liability owed by the taxpayer after the application of any
	450	+	37 credits, which under IC 6-3.1-1-2 must be applied before the credit
	451	+	38 provided by this chapter. In addition, the tax credit which a taxpayer
	452	+	39 receives under this chapter may not exceed twenty-five thousand
	453	+	40 dollars ($25,000) for any taxable year of the taxpayer.
	454	+	41 (c) If a business firm that is:
	455	+	42 (1) exempt from adjusted gross income tax (IC 6-3-1 through
	456	+	ES 260—LS 6546/DI 129 11
	457	+	1 IC 6-3-7) under IC 6-3-2-2.8(2); or
	458	+	2 (2) a partnership;
	459	+	3 does not have any tax liability against which the credit provided by this
	460	+	4 section may be applied, a shareholder or a partner of the business firm
	461	+	5 is entitled to a credit against the shareholder's or the partner's liability
	462	+	6 under the adjusted gross income tax.
	463	+	7 (d) The amount of the credit provided by this section is equal to:
	464	+	8 (1) the tax credit determined for the business firm for the taxable
	465	+	9 year under subsection (a); multiplied by
	466	+	10 (2) the percentage of the business firm's distributive income to
	467	+	11 which the shareholder or the partner is entitled.
	468	+	12 The credit provided by this section is in addition to any credit to which
	469	+	13 a shareholder or partner is otherwise entitled under this chapter.
	470	+	14 However, a business firm and a shareholder or partner of that business
	471	+	15 firm may not claim a credit under this chapter for the same investment.
	472	+	16 contribution.
	473	+	17 SECTION 17. IC 6-3.1-9-4, AS AMENDED BY P.L.1-2007,
	474	+	18 SECTION 56, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	475	+	19 JULY 1, 2024]: Sec. 4. (a) The neighborhood organization, on
	476	+	20 behalf of any business firm or person which desires to claim a tax
	477	+	21 credit as provided in this chapter, shall file with the department,
	478	+	22 authority, in the form that the department authority may prescribe, an
	479	+	23 application documentation stating the amount of the contribution or
	480	+	24 investment which it proposes to make which that would qualify for a
	481	+	25 tax credit, and the amount sought allocated to the business firm or
	482	+	26 person to be claimed as a credit. The application shall include a
	483	+	27 certificate evidencing approval of the contribution or program by the
	484	+	28 authority.
	485	+	29 (b) The authority shall give priority in issuing certificates tax
	486	+	30 credits to applicants neighborhood organizations whose
	487	+	31 contributions or programs directly benefit enterprise zones.
	488	+	32 (c) The department shall promptly notify an applicant a business
	489	+	33 firm or person whether, or the extent to which, the tax credit is
	490	+	34 allowable in the state fiscal year in which the application tax return
	491	+	35 claiming the credit is filed, as provided in section 5 of this chapter. If
	492	+	36 the credit is allowable in that state fiscal year, the applicant shall within
	493	+	37 thirty (30) days after receipt of the notice file with the department of
	494	+	38 state revenue a statement, in the form and accompanied by the proof of
	495	+	39 payment as the department may prescribe, setting forth that the amount
	496	+	40 to be claimed as a credit under this chapter has been paid to an
	497	+	41 organization for an approved program or purpose, or permanently set
	498	+	42 aside in a special account to be used solely for an approved program or
	499	+	ES 260—LS 6546/DI 129 12
	500	+	1 purpose.
	501	+	2 (d) The department may disallow any credit claimed under this
	502	+	3 chapter for which the statement or proof of payment is not filed within
	503	+	4 the thirty (30) day period. shall consider documentation from the
	504	+	5 authority as proof of payment, setting forth that the amount to be
	505	+	6 claimed as a credit under this chapter has been paid to an
	506	+	7 organization for an approved program or purpose, or permanently
	507	+	8 set aside in a special account to be used solely for an approved
	508	+	9 program or purpose.
	509	+	10 SECTION 18. IC 6-3.1-9-5 IS AMENDED TO READ AS
	510	+	11 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 5. (a) The amount of
	511	+	12 tax credits allowed under this chapter may not exceed two million five
	512	+	13 hundred thousand dollars ($2,500,000) in the state fiscal year
	513	+	14 beginning July 1, 1997, and ending June 30, 1998, and each state fiscal
	514	+	15 year thereafter.
	515	+	16 (b) The department shall record the time of filing of each
	516	+	17 application for allowance of a credit required tax return claiming the
	517	+	18 credit under section 4 of this chapter and shall approve the
	518	+	19 applications, credit if they the business firm or person otherwise
	519	+	20 qualify qualifies for a tax credit under this chapter, in the chronological
	520	+	21 order in which the applications are tax return claiming the credit is
	521	+	22 filed in the state fiscal year.
	522	+	23 (c) When the total credits approved under this section equal the
	523	+	24 maximum amount allowable in any state fiscal year, no application
	524	+	25 credits thereafter filed for that same fiscal year shall be approved.
	525	+	26 However, if any applicant for whom a credit has been approved fails to
	526	+	27 file the statement of proof of payment required under section 4 of this
	527	+	28 chapter, an amount equal to the credit previously allowed or set aside
	528	+	29 for the applicant may be allowed to any subsequent applicant in the
	529	+	30 year. In addition, the department may, if the applicant so requests,
	530	+	31 approve a credit application, in whole or in part, with respect to the
	531	+	32 next succeeding state fiscal year.
	532	+	33 SECTION 19. IC 6-3.1-18-0.3 IS ADDED TO THE INDIANA
	533	+	34 CODE AS A NEW SECTION TO READ AS FOLLOWS
	534	+	35 [EFFECTIVE JULY 1, 2024]: Sec. 0.3. As used in this chapter,
	535	+	36 "authority" means the Indiana housing and community
	536	+	37 development authority established by IC 5-20-1-3.
	537	+	38 SECTION 20. IC 6-3.1-18-0.5 IS ADDED TO THE INDIANA
	538	+	39 CODE AS A NEW SECTION TO READ AS FOLLOWS
	539	+	40 [EFFECTIVE JULY 1, 2024]: Sec. 0.5. As used in this chapter,
	540	+	41 "business firm" means any business entity authorized to do
	541	+	42 business in the state of Indiana that has state tax liability.
	542	+	ES 260—LS 6546/DI 129 13
	543	+	1 SECTION 21. IC 6-3.1-18-0.7 IS ADDED TO THE INDIANA
	544	+	2 CODE AS A NEW SECTION TO READ AS FOLLOWS
	545	+	3 [EFFECTIVE JULY 1, 2024]: Sec. 0.7. As used in this chapter,
	546	+	4 "community based organization" has the meaning set forth in
	547	+	5 IC 4-4-28-1.7.
	548	+	6 SECTION 22. IC 6-3.1-18-2 IS AMENDED TO READ AS
	549	+	7 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 2. As used in this
	550	+	8 chapter, "fund" refers to an individual development account fund
	551	+	9 established by a community development corporation or community
	552	+	10 based organization under IC 4-4-28-13.
	553	+	11 SECTION 23. IC 6-3.1-18-4.3 IS ADDED TO THE INDIANA
	554	+	12 CODE AS A NEW SECTION TO READ AS FOLLOWS
	555	+	13 [EFFECTIVE JULY 1, 2024]: Sec. 4.3. As used in this chapter,
	556	+	14 "person" means any individual subject to Indiana adjusted gross
	557	+	15 income tax.
	558	+	16 SECTION 24. IC 6-3.1-18-4.5, AS ADDED BY P.L.50-2016,
	559	+	17 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	560	+	18 JULY 1, 2024]: Sec. 4.5. As used in this chapter, "qualified
	561	+	19 contribution" means a contribution to a fund for which a community
	562	+	20 development corporation or community based organization has
	563	+	21 received an allocation of tax credits under IC 4-4-28-13.
	564	+	22 SECTION 25. IC 6-3.1-18-6, AS AMENDED BY P.L.50-2016,
	565	+	23 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	566	+	24 JULY 1, 2024]: Sec. 6. (a) Subject to the limitations provided in
	567	+	25 subsection (b) and sections 7, 8, 9, 10, and 11 of this chapter, the
	568	+	26 department shall grant a tax credit against any state tax liability due
	569	+	27 equal to fifty percent (50%) of the amount of a qualified contribution
	570	+	28 made in a taxable year by a business firm or person or an individual
	571	+	29 if the qualified contribution is not less than one hundred dollars ($100)
	572	+	30 and not more than fifty thousand dollars ($50,000).
	573	+	31 (b) The credit provided by this chapter shall only be applied against
	574	+	32 any state tax liability owed by the taxpayer after the application of any
	575	+	33 credits that under IC 6-3.1-1-2 must be applied before the credit
	576	+	34 provided by this chapter.
	577	+	35 SECTION 26. IC 6-3.1-18-9, AS AMENDED BY P.L.50-2016,
	578	+	36 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	579	+	37 JULY 1, 2024]: Sec. 9. (a) The community development corporation
	580	+	38 or community based organization, on behalf of a business firm or
	581	+	39 person that or an individual who desires to claim a tax credit as
	582	+	40 provided in this chapter, shall file with the department, authority, in
	583	+	the form approved by the department, 41 authority, an application
	584	+	42 documentation stating the amount of the qualified contribution that
	585	+	ES 260—LS 6546/DI 129 14
	586	+	1 the person or individual proposes to make would qualify for a tax
	587	+	2 credit, and the amount sought allocated to the business firm or
	588	+	3 person to be claimed as a credit.
	589	+	4 (b) The department shall promptly notify an applicant a business
	590	+	5 firm or person whether, or the extent to which, the tax credit is
	591	+	6 allowable in the state fiscal year in which the application tax return
	592	+	7 claiming the credit is filed, as provided in section 6 of this chapter. If
	593	+	8 the credit is allowable in that state fiscal year, the applicant shall within
	594	+	9 thirty (30) days after receipt of the notice file with the department a
	595	+	10 statement, in the form and accompanied by the proof of payment of the
	596	+	11 qualified contribution as the department may prescribe, setting forth
	597	+	12 that the amount to be claimed as a credit under this chapter has been
	598	+	13 paid through a qualified contribution as provided in section 6 of this
	599	+	14 chapter.
	600	+	15 (c) The department may disallow any credit claimed under this
	601	+	16 chapter for which the statement or proof of payment is not filed within
	602	+	17 the thirty (30) day period. shall consider documentation from the
	603	+	18 authority as proof of payment, setting forth that the amount to be
	604	+	19 claimed as a credit under this chapter has been paid to a
	605	+	20 community development corporation or a community based
	606	+	21 organization as a qualified contribution to the fund of the
	607	+	22 community development corporation or the community based
	608	+	23 organization fund for the current state fiscal year, or permanently
	609	+	24 set aside in a special account to be used solely for this fund.
	610	+	25 SECTION 27. IC 6-3.1-18-10 IS AMENDED TO READ AS
	611	+	26 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10. (a) The amount of
	612	+	27 tax credits allowed under this chapter may not exceed two hundred
	613	+	28 thousand dollars ($200,000) in any state fiscal year.
	614	+	29 (b) The department shall:
	615	+	30 (1) record the time of filing of each application for allowance of
	616	+	31 a tax return claiming the credit required under section 9 of this
	617	+	32 chapter; and
	618	+	33 (2) approve the applications, credit, if they the business firm or
	619	+	34 person claiming the credit otherwise qualify qualifies for a tax
	620	+	35 credit under this chapter, in the chronological order in which the
	621	+	36 applications are tax return claiming the credit is filed in the
	622	+	37 state fiscal year.
	623	+	38 (c) When the total credits approved under this section equal the
	624	+	39 maximum amount allowable in any state fiscal year, an application
	625	+	40 filed after that time for the no credits thereafter filed for that same
	626	+	41 fiscal year may not shall be approved. However, if an applicant for
	627	+	42 whom a credit has been approved fails to file the statement of proof of
	628	+	ES 260—LS 6546/DI 129 15
	629	+	1 payment required under section 9 of this chapter, an amount equal to
	630	+	2 the credit previously allowed or set aside for the applicant may be
	631	+	3 allowed to any subsequent applicant in the year. In addition, the
	632	+	4 department may, if the applicant so requests, approve a credit
	633	+	5 application, in whole or in part, with respect to the next succeeding
	634	+	6 state fiscal year.
	635	+	ES 260—LS 6546/DI 129 16
	636	+	COMMITTEE REPORT
	637	+	Madam President: The Senate Committee on Tax and Fiscal Policy,
	638	+	to which was referred Senate Bill No. 260, has had the same under
	639	+	consideration and begs leave to report the same back to the Senate with
	640	+	the recommendation that said bill DO PASS.
	641	+	(Reference is to SB 260 as introduced.)
	642	+
	643	+	HOLDMAN, Chairperson
	644	+	Committee Vote: Yeas 14, Nays 0
	645	+	_____
	646	+	SENATE MOTION
	647	+	Madam President: I move that Senate Bill 260 be amended to read
	648	+	as follows:
	649	+	Page 1, delete lines 1 through 12, begin a new paragraph and insert:
	650	+	"SECTION 1. IC 4-4-28-1.7 IS ADDED TO THE INDIANA CODE
15	651		AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
16	652		1, 2024]: Sec. 1.7. (a) As used in this chapter, "community based
17	653		organization" means a private, nonprofit corporation whose board
18	654		of directors is comprised of business, civic, and community leaders,
19	655		and whose principal purpose includes the provision of low income
20	656		housing.
21	657		(b) A community based organization shall not be construed to
22		-	have the same powers as a community development corporation.
23		-	SECTION 2. IC 4-4-28-4 IS AMENDED TO READ AS FOLLOWS
24		-	[EFFECTIVE JULY 1, 2024]: Sec. 4. As used in this chapter, "fund"
25		-	refers to an individual development account fund established by a
26		-	community development corporation or community based
27		-	organization under section 13 of this chapter.
28		-	SECTION 3. IC 4-4-28-5, AS AMENDED BY P.L.50-2016,
29		-	SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30		-	JULY 1, 2024]: Sec. 5. As used in this chapter, "individual
31		-	development account" means an account in a financial institution
32		-	administered by a community development corporation or community
33		-	based organization that allows a qualifying individual to deposit
34		-	money:
35		-	(1) to be matched by the state, financial institutions, corporations,
36		-	SEA 260 — CC 1 2
37		-	and other entities; and
38		-	(2) that will be used by the qualifying individual for one (1) or
39		-	more of the following:
40		-	(A) To pay for costs (including tuition, laboratory costs, books,
41		-	computer costs, and other costs associated with attendance) at
42		-	an accredited postsecondary educational institution or a
43		-	vocational school that is not a postsecondary educational
44		-	institution, for the individual or for a dependent of the
45		-	individual.
46		-	(B) To pay for the costs (including tuition, laboratory costs,
47		-	books, computer costs, and other costs) associated with an
48		-	accredited or a licensed training program that may lead to
49		-	employment for the individual or for a dependent of the
50		-	individual.
51		-	(C) To purchase a primary residence located in Indiana for the
52		-	individual or for a dependent of the individual or to reduce the
53		-	principal amount owed on a primary residence located in
54		-	Indiana that was purchased by the individual or a dependent of
55		-	the individual with money from an individual development
56		-	account.
57		-	(D) To pay for the rehabilitation (as defined in IC 6-3.1-11-11)
58		-	of the individual's primary residence located in Indiana.
59		-	(E) To begin or to purchase part or all of a business based in
60		-	Indiana or to expand an existing small business based in
61		-	Indiana.
62		-	(F) Subject to section 8(b) of this chapter, to purchase a motor
63		-	vehicle.
64		-	SECTION 4. IC 4-4-28-7, AS AMENDED BY P.L.50-2016,
65		-	SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
66		-	JULY 1, 2024]: Sec. 7. (a) A qualifying individual, including an
67		-	individual who:
68		-	(1) established an individual development account under this
69		-	chapter before July 1, 2001; and
70		-	(2) held the account described in subdivision (1) for less than four
71		-	(4) years;
72		-	may establish an account by applying at a community development
73		-	corporation or community based organization after June 30, 2001.
74		-	(b) At the time of establishing an account under this section, the
75		-	qualifying individual must name a beneficiary to replace the qualifying
76		-	individual as the holder of the account if the qualifying individual dies.
77		-	If the beneficiary:
78		-	(1) is a member of the qualifying individual's family, all funds in
79		-	SEA 260 — CC 1 3
80		-	the account remain in the account; and
81		-	(2) is not a member of the qualifying individual's family, all funds
82		-	in the account provided by the state revert to the state.
83		-	The qualifying individual may change the name of the beneficiary at
84		-	the qualifying individual's discretion. A beneficiary who becomes the
85		-	holder of an account under this subsection is subject to this chapter and
86		-	rules adopted under this chapter regarding withdrawals from the
87		-	account.
88		-	(c) Only one (1) member of a qualifying individual's household may
89		-	establish an account.
90		-	(d) A qualifying individual shall maintain residency in Indiana until
91		-	the individual development account is closed.
92		-	SECTION 5. IC 4-4-28-8, AS AMENDED BY P.L.50-2016,
	658	+	have the same powers as a community development corporation.".
	659	+	Page 1, line 15, reset in roman "a".
	660	+	Page 1, line 16, reset in roman "community development
	661	+	corporation".
	662	+	Page 1, line 16, delete "an eligible" and insert "and community
	663	+	based".
	664	+	Page 2, line 5, reset in roman "a community development
	665	+	corporation".
	666	+	Page 2, line 5, delete "an eligible" and insert "and community
	667	+	based".
	668	+	Page 3, line 1, reset in roman "a community development".
	669	+	Page 3, line 2, reset in roman "corporation".
	670	+	Page 3, line 2, delete "an eligible" and insert "and community
	671	+	based".
	672	+	Page 3, delete lines 20 through 40, begin a new paragraph and
	673	+	insert:
	674	+	ES 260—LS 6546/DI 129 17
	675	+	"SECTION 6. IC 4-4-28-8, AS AMENDED BY P.L.50-2016,
93	676		SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
94		-	JULY 1, 2024]: Sec. 8. (a) A community development corporation or
	677	+	JULY 1, 2024]: Sec. 8. (a) A community development corporation and
95	678		community based organization shall do the following:
96	679		(1) Determine whether an individual who wants to establish an
97	680		account is a qualifying individual.
98	681		(2) Administer, through a financial institution, and act as trustee
99	682		for each account established through the community development
100		-	corporation or community based organization.
	683	+	corporation and community based organization.
101	684		(3) Approve or deny an individual's request to make a withdrawal
102	685		from the individual's account.
103	686		(4) Provide or arrange for training in money management,
104	687		budgeting, and related topics for each individual who establishes
105	688		an account.
106		-	(b) A community development corporation or community based
	689	+	(b) A community development corporation and community based
107	690		organization may approve a qualifying individual's request to make a
108	691		withdrawal from an account to purchase a motor vehicle if the purpose
109	692		of the purchase is primarily to transport the individual to and from
110	693		work, postsecondary education, or an accredited or licensed training
111	694		program intended to lead to employment of the individual or a
112		-	dependent of the individual.
113		-	SECTION 6. IC 4-4-28-9, AS AMENDED BY P.L.150-2007,
114		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
115		-	JULY 1, 2024]: Sec. 9. (a) An individual may deposit money from the
116		-	individual's earned income into the individual's account.
117		-	(b) An individual may deposit an unlimited amount of money into
118		-	the individual's account, However, only eight hundred of which the
119		-	first one thousand five hundred dollars ($800) ($1,500) annually is
120		-	eligible for a state deposit as provided in section 12 of this chapter.
121		-	SECTION 7. IC 4-4-28-10, AS AMENDED BY P.L.150-2007,
122		-	SEA 260 — CC 1 4
123		-	SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
124		-	JULY 1, 2024]: Sec. 10. (a) Not more than eight hundred (800)
125		-	accounts may be established in the state each state fiscal year
126		-	beginning before July 1, 2009.
127		-	(b) Not more than one thousand (1,000) accounts may be
128		-	established in the state each state fiscal year beginning after June 30,
129		-	2009.
130		-	(c) A community development corporation or community based
	695	+	dependent of the individual.".
	696	+	Page 4, delete lines 15 through 34, begin a new paragraph and
	697	+	insert:
	698	+	"(c) A community development corporation and community based
131	699		organization shall use money that is in an individual development
132	700		account fund established under section 13 of this chapter to allow a
133	701		qualified individual on a waiting list maintained by the community
134		-	development corporation or community based organization to
	702	+	development corporation and community based organization to
135	703		establish an account.
136		-	SECTION 8. IC 4-4-28-11, AS AMENDED BY P.L.1-2007,
	704	+	SECTION 9. IC 4-4-28-11, AS AMENDED BY P.L.1-2007,
137	705		SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
138	706		JULY 1, 2024]: Sec. 11. (a) Each community development corporation
139		-	or community based organization shall annually provide the
	707	+	and community based organization shall annually provide the
140	708		authority with information needed to determine:
141	709		(1) the number of accounts administered by the community
142		-	development corporation or community based organization;
	710	+	development corporation and community based organization;
143	711		(2) the length of time each account under subdivision (1) has been
144	712		established; and
145	713		(3) the amount of money an individual has deposited into each
146	714		account under subdivision (1). during the preceding twelve (12)
147	715		months.
148	716		(b) The authority shall use the information provided under
	717	+	ES 260—LS 6546/DI 129 18
149	718		subsection (a) to deposit the correct amount of money into each
150		-	account as provided in section 12 of this chapter.
151		-	SECTION 9. IC 4-4-28-12, AS AMENDED BY P.L.50-2016,
152		-	SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
153		-	JULY 1, 2024]: Sec. 12. (a) The authority shall allocate, for each
154		-	account that has been established, for not more than five (5) years,
155		-	three dollars ($3) for each one dollar ($1) of the first four one
156		-	thousand five hundred dollars ($400) ($1,500) an individual deposited
157		-	into the individual's account. during the preceding twelve (12) months.
158		-	However, if the amount appropriated by the general assembly is
159		-	insufficient to make the deposits required by this section for accounts
160		-	that have been established, the authority shall proportionately reduce
161		-	the amounts allocated to and deposited into each account. The authority
162		-	may allocate three dollars ($3) for each one dollar ($1) of any part of
163		-	an amount above four hundred dollars ($400) an individual deposited
164		-	into the individual's account during the preceding twelve (12) months.
165		-	SEA 260 — CC 1 5
166		-	However, The authority's allocation under this subsection may not
167		-	exceed two four thousand four five hundred dollars ($2,400) ($4,500)
168		-	for each account described in this subsection.
169		-	(b) The authority shall deposit into each account established under
170		-	this chapter the appropriate amount of money determined under this
171		-	section.
172		-	(c) Money from a federal block grant program under Title IV-A of
173		-	the federal Social Security Act may be used by the state to provide
174		-	money under this section for deposit into an account held by an
175		-	individual who receives assistance under IC 12-14-2.
176		-	SECTION 10. IC 4-4-28-13, AS AMENDED BY P.L.50-2016,
	719	+	account as provided in section 12 of this chapter.".
	720	+	Page 5, delete lines 17 through 42, begin a new paragraph and
	721	+	insert:
	722	+	"SECTION 11. IC 4-4-28-13, AS AMENDED BY P.L.50-2016,
177	723		SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
178	724		JULY 1, 2024]: Sec. 13. (a) Each community development corporation
179		-	or community based organization may apply to the authority for an
	725	+	and community based organization may apply to the authority for an
180	726		allocation of tax credits under IC 6-3.1-18 for the contributors to a fund
181	727		established under this section. A community development corporation
182		-	or community based organization may establish an individual
	728	+	and community based organization may establish an individual
183	729		development account fund to provide money to be used to finance
184	730		additional accounts to be administered by the community development
185		-	corporation or community based organization under this chapter ~~and~~
186		-	to help pay for the community development corporation's or
	731	+	corporation and community based organization under this chapter
	732	+	and to help pay for the community development corporation's and
187	733		community based organization's expenses related to the
188	734		administration of accounts.
189		-	(b) Each community development corporation or community ~~based~~
190		-	organization shall encourage individuals, financial institutions,
	735	+	(b) Each community development corporation and community
	736	+	based organization shall encourage individuals, financial institutions,
191	737		corporations, and other entities to contribute to the fund. A contributor
192	738		to the fund may qualify for a tax credit as provided under IC 6-3.1-18.
193		-	(c) Each community development corporation or community ~~based~~
194		-	organization may use up to twenty percent (20%) of the first ~~one~~
195		-	hundred thousand dollars ($100,000) deposited each calendar year in
196		-	the fund under subsection (b) to help pay for the community
197		-	development corporation's or community based organization's
	739	+	(c) Each community development corporation and community
	740	+	based organization may use up to twenty percent (20%) of the first
	741	+	one hundred thousand dollars ($100,000) deposited each calendar year
	742	+	in the fund under subsection (b) to help pay for the community
	743	+	development corporation's and community based organization's
198	744		expenses related to the administration of accounts established under
199	745		this chapter. All deposits in the fund under subsection (b) of more than
200	746		one hundred thousand dollars ($100,000) during each calendar year
201	747		may be used only to fund accounts administered by the community
202		-	development corporation or community based organization under
	748	+	development corporation and community based organization under
203	749		this chapter.
204		-	(d) A community development corporation or community based
	750	+	(d) A community development corporation and community based
205	751		organization may allow an individual to establish a new account as
206	752		adequate funding becomes available.
207	753		(e) Only money from the fund may be used to make the deposit
208		-	SEA 260 — CC 1 6
209	754		described in subsection (f) into an account established under this
210	755		section.
211		-	(f) The community development corporation or community based
	756	+	(f) The community development corporation and community based
212	757		organization shall annually deposit at least three dollars ($3) into each
213	758		account for each one dollar ($1) an individual has deposited into the
214	759		individual's account as of June 30.
215		-	(g) A community development corporation or community based
	760	+	ES 260—LS 6546/DI 129 19
	761	+	(g) A community development corporation and community based
216	762		organization may not allow a qualifying individual to establish an
217		-	account if the community development corporation or community
	763	+	account if the community development corporation and community
218	764		based organization does not have adequate funds to deposit into the
219		-	account under subsection (f).
220		-	SECTION 11. IC 4-4-28-15, AS AMENDED BY P.L.1-2007,
221		-	SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
222		-	JULY 1, 2024]: Sec. 15. (a) An individual must request and receive
223		-	authorization from the community development corporation or
224		-	community based organization that administers the individual's
225		-	account before withdrawing money from the account for any purpose.
226		-	(b) An individual who is denied authorization to withdraw money
227		-	under subsection (a) may appeal the community development
228		-	corporation's or community based organization's decision to the
229		-	authority under rules adopted by the authority under IC 4-22-2.
230		-	SECTION 12. IC 4-4-28-16, AS AMENDED BY P.L.50-2016,
231		-	SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
232		-	JULY 1, 2024]: Sec. 16. (a) Money withdrawn from an individual's
233		-	account is not subject to taxation under IC 6-3-1 through IC 6-3-7 if the
234		-	money is used for at least one (1) of the following:
235		-	(1) To pay for costs (including tuition, laboratory costs, books,
236		-	computer costs, and other costs) at an accredited postsecondary
237		-	educational institution or a vocational school that is not a
238		-	postsecondary educational institution for the individual or for a
239		-	dependent of the individual.
240		-	(2) To pay for the costs (including tuition, laboratory costs, books,
241		-	computer costs, and other costs) associated with an accredited or
242		-	a licensed training program that may lead to employment for the
243		-	individual or for a dependent of the individual.
244		-	(3) To purchase a primary residence located in Indiana for the
245		-	individual or for a dependent of the individual or to reduce the
246		-	principal amount owed on a primary residence located in Indiana
247		-	that was purchased by the individual or a dependent of the
248		-	individual with money from an individual development account.
249		-	(4) To pay for the rehabilitation (as defined in IC 6-3.1-11-11) of
250		-	the individual's primary residence located in Indiana.
251		-	SEA 260 — CC 1 7
252		-	(5) To begin or to purchase part or all of a business based in
253		-	Indiana or to expand an existing small business based in Indiana.
254		-	(6) Subject to section 8(b) of this chapter, to purchase a motor
255		-	vehicle.
256		-	(b) At the time of requesting authorization under section 15 of this
	765	+	account under subsection (f).".
	766	+	Page 6, delete lines 1 through 15.
	767	+	Page 6, line 19, reset in roman "community development
	768	+	corporation".
	769	+	Page 6, line 19, delete "eligible" and insert "and community
	770	+	based".
	771	+	Page 6, line 23, reset in roman "community development".
	772	+	Page 6, line 24, reset in roman "corporation's".
	773	+	Page 6, line 24, delete "eligible" and insert "and community
	774	+	based".
	775	+	Page 7, delete lines 9 through 31, begin a new paragraph and insert:
	776	+	"(b) At the time of requesting authorization under section 15 of this
257	777		chapter to withdraw money from an individual's account under
258	778		subsection (a)(5), the individual must provide the community
259		-	development corporation or community based organization with a
	779	+	development corporation and community based organization with a
260	780		business plan that:
261	781		(1) has been approved by a financial institution or is approved by
262		-	the community development corporation or community based
	782	+	the community development corporation and community based
263	783		organization;
264	784		(2) includes a description of services or goods to be sold, a
265	785		marketing plan, and projected financial statements; and
266	786		(3) may require the individual to obtain the assistance of an
267	787		experienced business advisor.
268		-	SECTION 13. IC 4-4-28-18, AS AMENDED BY P.L.1-2007,
	788	+	SECTION 14. IC 4-4-28-18, AS AMENDED BY P.L.1-2007,
269	789		SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
270	790		JULY 1, 2024]: Sec. 18. (a) Each community development corporation
271		-	or community based organization shall annually:
	791	+	and community based organization shall annually:
272	792		(1) evaluate the individual development accounts administered by
273		-	the community development corporation or community based
	793	+	the community development corporation and community based
274	794		organization; and
275	795		(2) submit a report containing the evaluation information to the
276	796		authority.
277		-	(b) Two (2) or more community development corporations or
	797	+	(b) Two (2) or more community development corporations and
278	798		community based organizations may work together in carrying out
279		-	the purposes of this chapter.
280		-	SECTION 14. IC 6-3.1-9-1, AS AMENDED BY P.L.166-2014,
281		-	SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
282		-	JULY 1, 2024]: Sec. 1. (a) As used in this chapter, "authority" means
283		-	the Indiana housing and community development authority established
284		-	by IC 5-20-1-3.
285		-	(b) As used in this chapter, "business firm" means any business
286		-	entity authorized to do business in the state of Indiana that has state tax
287		-	liability.
288		-	(c) As used in this chapter, "community services" means any type
289		-	of:
290		-	(1) counseling and advice;
291		-	(2) emergency assistance;
292		-	(3) medical care;
293		-	(4) recreational facilities;
294		-	SEA 260 — CC 1 8
295		-	(5) housing facilities; or
296		-	(6) economic development assistance;
297		-	provided to individuals, economically disadvantaged households,
298		-	groups, or neighborhood organizations in an economically
299		-	disadvantaged area or provided to individuals who are ex-offenders
300		-	who have completed the individuals' criminal sentences or are serving
301		-	a term of probation or parole.
302		-	(d) As used in this chapter, "crime prevention" means any activity
303		-	which aids in the reduction of crime in an economically disadvantaged
304		-	area or an economically disadvantaged household.
305		-	(e) As used in this chapter, "economically disadvantaged area"
306		-	means an enterprise zone, or any other federally or locally designated
307		-	economically disadvantaged area in Indiana. The certification shall be
308		-	made on the basis of current indices of social and economic conditions,
309		-	which shall include but not be limited to the median per capita income
310		-	of the area in relation to the median per capita income of the state or
311		-	standard metropolitan statistical area in which the area is located.
312		-	(f) As used in this chapter, "economically disadvantaged household"
313		-	means a household with an annual income that is at or below eighty
314		-	percent (80%) of the area median income or any other federally
315		-	designated target population.
316		-	(g) As used in this chapter, "education" means any type of scholastic
317		-	instruction or scholarship assistance to an individual who:
318		-	(1) resides in an economically disadvantaged area; or
319		-	(2) is an ex-offender who has completed the individual's criminal
320		-	sentence or is serving a term of probation or parole;
321		-	that enables the individual to prepare for better life opportunities.
322		-	(h) As used in this chapter, "enterprise zone" means an enterprise
323		-	zone created under IC 5-28-15.
324		-	(i) As used in this chapter, "job training" means any type of
325		-	instruction to an individual who:
326		-	(1) resides in:
327		-	(A) an economically disadvantaged area; or
328		-	(B) an economically disadvantaged household; or
329		-	(2) is an ex-offender who has completed the individual's criminal
330		-	sentence or is serving a term of probation or parole;
331		-	that enables the individual to acquire vocational skills so that the
332		-	individual can become employable or be able to seek a higher grade of
333		-	employment.
334		-	(j) As used in this chapter, "neighborhood assistance" means either:
335		-	(1) furnishing financial assistance, labor, material, and technical
336		-	advice to aid in the physical or economic improvement of any part
337		-	SEA 260 — CC 1 9
338		-	or all of an economically disadvantaged area; or
339		-	(2) furnishing technical advice to promote higher employment in
340		-	any neighborhood in Indiana.
341		-	(k) As used in this chapter, "neighborhood organization" means any
342		-	organization, including but not limited to a nonprofit development
343		-	corporation doing both of the following:
344		-	(1) Performing community services:
345		-	(A) in an economically disadvantaged area;
346		-	(B) for an economically disadvantaged household; or
347		-	(C) for individuals who are ex-offenders who have completed
348		-	the individuals' criminal sentences or are serving a term of
349		-	probation or parole.
350		-	(2) Holding a ruling:
351		-	(A) from the Internal Revenue Service of the United States
352		-	Department of the Treasury that the organization is exempt
353		-	from income taxation under the provisions of the Internal
354		-	Revenue Code; and
355		-	(B) from the department of state revenue that the organization
356		-	is exempt from income taxation under IC 6-2.5-5-21.
357		-	(l) As used in this chapter, "person" means any individual subject
358		-	to Indiana gross or adjusted gross income tax.
359		-	(m) As used in this chapter, "state fiscal year" means a twelve (12)
360		-	month period beginning on July 1 and ending on June 30.
361		-	(n) As used in this chapter, "state tax liability" means the taxpayer's
362		-	total tax liability that is incurred under:
363		-	(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); and
364		-	(2) IC 6-5.5 (the financial institutions tax);
365		-	as computed after the application of the credits that, under
366		-	IC 6-3.1-1-2, are to be applied before the credit provided by this
367		-	chapter.
368		-	(o) As used in this chapter, "tax credit" means a deduction from any
369		-	tax otherwise due and payable under IC 6-3 or IC 6-5.5.
370		-	SECTION 15. IC 6-3.1-9-2, AS AMENDED BY P.L.166-2014,
371		-	SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
372		-	JULY 1, 2024]: Sec. 2. (a) Each state fiscal year, a business firm or
373		-	a person who contributes to a neighborhood organization that engages
374		-	in the activities of providing:
375		-	(1) neighborhood assistance, job training, or education for
376		-	individuals not employed by the business firm or person;
377		-	(2) community services or crime prevention in an economically
378		-	disadvantaged area; or
379		-	(3) community services, education, or job training services to
380		-	SEA 260 — CC 1 10
381		-	individuals who are ex-offenders who have completed the
382		-	individuals' criminal sentences or are serving a term of probation
383		-	or parole;
384		-	shall receive a tax credit as provided in section 3 of this chapter if the
385		-	authority approves the proposal of the business firm or person, setting
386		-	forth the program to be conducted, the area selected, the estimated
387		-	amount to be invested in the program, and the plans for implementing
388		-	the program. may apply to the authority for an allocation of state
389		-	tax credits available under this chapter to be used to provide a tax
390		-	credit to a business firm or person that contributes to a program
391		-	involving one (1) or more of the activities described in subdivisions
392		-	(1) through (3).
393		-	(b) The authority, after consultation with the community services
394		-	agency and the commissioner of revenue, may adopt rules for the
395		-	approval or disapproval of these proposals. applications.
396		-	(c) A business firm or a person that contributes to the fund of a
397		-	neighborhood organization that has been approved by the
398		-	authority for an allocation of tax credits as described in subsection
399		-	(a) shall receive a tax credit as provided in section 3 of this chapter
400		-	if the neighborhood organization has agreed to issue a portion of
401		-	the tax credits allocated to the neighborhood organization by the
402		-	authority to the business firm or person.
403		-	SECTION 16. IC 6-3.1-9-3 IS AMENDED TO READ AS
404		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) Subject to the
405		-	limitations provided in subsection (b) and sections 4, 5, and 6 of this
406		-	chapter, the department shall grant a tax credit against any state tax
407		-	liability due equal to fifty percent (50%) of the amount invested
408		-	contributed by a business firm or person in a program the proposal
409		-	application for which was approved under section 2 of this chapter.
410		-	(b) The credit provided by this chapter shall only be applied against
411		-	any state tax liability owed by the taxpayer after the application of any
412		-	credits, which under IC 6-3.1-1-2 must be applied before the credit
413		-	provided by this chapter. In addition, the tax credit which a taxpayer
414		-	receives under this chapter may not exceed twenty-five thousand
415		-	dollars ($25,000) for any taxable year of the taxpayer.
416		-	(c) If a business firm that is:
417		-	(1) exempt from adjusted gross income tax (IC 6-3-1 through
418		-	IC 6-3-7) under IC 6-3-2-2.8(2); or
419		-	(2) a partnership;
420		-	does not have any tax liability against which the credit provided by this
421		-	section may be applied, a shareholder or a partner of the business firm
422		-	is entitled to a credit against the shareholder's or the partner's liability
423		-	SEA 260 — CC 1 11
424		-	under the adjusted gross income tax.
425		-	(d) The amount of the credit provided by this section is equal to:
426		-	(1) the tax credit determined for the business firm for the taxable
427		-	year under subsection (a); multiplied by
428		-	(2) the percentage of the business firm's distributive income to
429		-	which the shareholder or the partner is entitled.
430		-	The credit provided by this section is in addition to any credit to which
431		-	a shareholder or partner is otherwise entitled under this chapter.
432		-	However, a business firm and a shareholder or partner of that business
433		-	firm may not claim a credit under this chapter for the same investment.
434		-	contribution.
435		-	SECTION 17. IC 6-3.1-9-4, AS AMENDED BY P.L.1-2007,
436		-	SECTION 56, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
437		-	JULY 1, 2024]: Sec. 4. (a) The neighborhood organization, on
438		-	behalf of any business firm or person which desires to claim a tax
439		-	credit as provided in this chapter, shall file with the department,
440		-	authority, in the form that the department authority may prescribe, an
441		-	application documentation stating the amount of the contribution or
442		-	investment which it proposes to make which that would qualify for a
443		-	tax credit, and the amount sought allocated to the business firm or
444		-	person to be claimed as a credit. The application shall include a
445		-	certificate evidencing approval of the contribution or program by the
446		-	authority.
447		-	(b) The authority shall give priority in issuing certificates tax
448		-	credits to applicants neighborhood organizations whose
449		-	contributions or programs directly benefit enterprise zones.
450		-	(c) The department shall promptly notify an applicant a business
451		-	firm or person whether, or the extent to which, the tax credit is
452		-	allowable in the state fiscal year in which the application tax return
453		-	claiming the credit is filed, as provided in section 5 of this chapter. If
454		-	the credit is allowable in that state fiscal year, the applicant shall within
455		-	thirty (30) days after receipt of the notice file with the department of
456		-	state revenue a statement, in the form and accompanied by the proof of
457		-	payment as the department may prescribe, setting forth that the amount
458		-	to be claimed as a credit under this chapter has been paid to an
459		-	organization for an approved program or purpose, or permanently set
460		-	aside in a special account to be used solely for an approved program or
461		-	purpose.
462		-	(d) The department may disallow any credit claimed under this
463		-	chapter for which the statement or proof of payment is not filed within
464		-	the thirty (30) day period. shall consider documentation from the
465		-	authority as proof of payment, setting forth that the amount to be
466		-	SEA 260 — CC 1 12
467		-	claimed as a credit under this chapter has been paid to an
468		-	organization for an approved program or purpose, or permanently
469		-	set aside in a special account to be used solely for an approved
470		-	program or purpose.
471		-	SECTION 18. IC 6-3.1-9-5 IS AMENDED TO READ AS
472		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 5. (a) The amount of
473		-	tax credits allowed under this chapter may not exceed two million five
474		-	hundred thousand dollars ($2,500,000) in the state fiscal year
475		-	beginning July 1, 1997, and ending June 30, 1998, and each state fiscal
476		-	year thereafter.
477		-	(b) The department shall record the time of filing of each
478		-	application for allowance of a credit required tax return claiming the
479		-	credit under section 4 of this chapter and shall approve the
480		-	applications, credit if they the business firm or person otherwise
481		-	qualify qualifies for a tax credit under this chapter, in the chronological
482		-	order in which the applications are tax return claiming the credit is
483		-	filed in the state fiscal year.
484		-	(c) When the total credits approved under this section equal the
485		-	maximum amount allowable in any state fiscal year, no application
486		-	credits thereafter filed for that same fiscal year shall be approved.
487		-	However, if any applicant for whom a credit has been approved fails to
488		-	file the statement of proof of payment required under section 4 of this
489		-	chapter, an amount equal to the credit previously allowed or set aside
490		-	for the applicant may be allowed to any subsequent applicant in the
491		-	year. In addition, the department may, if the applicant so requests,
492		-	approve a credit application, in whole or in part, with respect to the
493		-	next succeeding state fiscal year.
494		-	SECTION 19. IC 6-3.1-18-0.3 IS ADDED TO THE INDIANA
495		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
496		-	[EFFECTIVE JULY 1, 2024]: Sec. 0.3. As used in this chapter,
497		-	"authority" means the Indiana housing and community
498		-	development authority established by IC 5-20-1-3.
499		-	SECTION 20. IC 6-3.1-18-0.5 IS ADDED TO THE INDIANA
500		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
501		-	[EFFECTIVE JULY 1, 2024]: Sec. 0.5. As used in this chapter,
502		-	"business firm" means any business entity authorized to do
503		-	business in the state of Indiana that has state tax liability.
504		-	SECTION 21. IC 6-3.1-18-0.7 IS ADDED TO THE INDIANA
	799	+	the purposes of this chapter.".
	800	+	Page 12, delete lines 41 through 42, begin a new paragraph and
	801	+	insert:
	802	+	"SECTION 22. IC 6-3.1-18-0.7 IS ADDED TO THE INDIANA
	803	+	ES 260—LS 6546/DI 129 20
505	804		CODE AS A NEW SECTION TO READ AS FOLLOWS
506	805		[EFFECTIVE JULY 1, 2024]: Sec. 0.7. As used in this chapter,
507	806		"community based organization" has the meaning set forth in
508		-	IC 4-4-28-1.7.
509		-	SEA 260 — CC 1 13
510		-	SECTION 22. IC 6-3.1-18-2 IS AMENDED TO READ AS
511		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 2. As used in this
512		-	chapter, "fund" refers to an individual development account fund
513		-	established by a community development corporation or community
514		-	based organization under IC 4-4-28-13.
515		-	SECTION 23. IC 6-3.1-18-4.3 IS ADDED TO THE INDIANA
516		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
517		-	[EFFECTIVE JULY 1, 2024]: Sec. 4.3. As used in this chapter,
518		-	"person" means any individual subject to Indiana adjusted gross
519		-	income tax.
520		-	SECTION 24. IC 6-3.1-18-4.5, AS ADDED BY P.L.50-2016,
521		-	SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
522		-	JULY 1, 2024]: Sec. 4.5. As used in this chapter, "qualified
523		-	contribution" means a contribution to a fund for which a community
524		-	development corporation or community based organization has
525		-	received an allocation of tax credits under IC 4-4-28-13.
526		-	SECTION 25. IC 6-3.1-18-6, AS AMENDED BY P.L.50-2016,
527		-	SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
528		-	JULY 1, 2024]: Sec. 6. (a) Subject to the limitations provided in
529		-	subsection (b) and sections 7, 8, 9, 10, and 11 of this chapter, the
530		-	department shall grant a tax credit against any state tax liability due
531		-	equal to fifty percent (50%) of the amount of a qualified contribution
532		-	made in a taxable year by a business firm or person or an individual
533		-	if the qualified contribution is not less than one hundred dollars ($100)
534		-	and not more than fifty thousand dollars ($50,000).
535		-	(b) The credit provided by this chapter shall only be applied against
536		-	any state tax liability owed by the taxpayer after the application of any
537		-	credits that under IC 6-3.1-1-2 must be applied before the credit
538		-	provided by this chapter.
539		-	SECTION 26. IC 6-3.1-18-9, AS AMENDED BY P.L.50-2016,
540		-	SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
541		-	JULY 1, 2024]: Sec. 9. (a) The community development corporation
542		-	or community based organization, on behalf of a business firm or
543		-	person that or an individual who desires to claim a tax credit as
544		-	provided in this chapter, shall file with the department, authority, in
545		-	the form approved by the department, authority, an application
546		-	documentation stating the amount of the qualified contribution that
547		-	the person or individual proposes to make would qualify for a tax
548		-	credit, and the amount sought allocated to the business firm or
549		-	person to be claimed as a credit.
550		-	(b) The department shall promptly notify an applicant a business
551		-	firm or person whether, or the extent to which, the tax credit is
552		-	SEA 260 — CC 1 14
553		-	allowable in the state fiscal year in which the application tax return
554		-	claiming the credit is filed, as provided in section 6 of this chapter. If
555		-	the credit is allowable in that state fiscal year, the applicant shall within
556		-	thirty (30) days after receipt of the notice file with the department a
557		-	statement, in the form and accompanied by the proof of payment of the
558		-	qualified contribution as the department may prescribe, setting forth
559		-	that the amount to be claimed as a credit under this chapter has been
560		-	paid through a qualified contribution as provided in section 6 of this
561		-	chapter.
562		-	(c) The department may disallow any credit claimed under this
	807	+	IC 4-4-28-1.7.".
	808	+	Page 13, delete lines 1 through 2.
	809	+	Page 13, line 6, reset in roman "community development
	810	+	corporation".
	811	+	Page 13, line 6, delete "an eligible" and insert "and community
	812	+	based".
	813	+	Page 13, line 16, reset in roman "a community".
	814	+	page 13, line 17, reset in roman "development corporation".
	815	+	Page 13, line 17, delete "an eligible" and insert "and community
	816	+	based".
	817	+	Page 13, line 34, delete "The eligible" and insert "The community
	818	+	development corporation and community based".
	819	+	Page 14, delete lines 11 through 19, begin a new paragraph and
	820	+	insert:
	821	+	"(c) The department may disallow any credit claimed under this
563	822		chapter for which the statement or proof of payment is not filed within
564	823		the thirty (30) day period. shall consider documentation from the
565	824		authority as proof of payment, setting forth that the amount to be
566	825		claimed as a credit under this chapter has been paid to a
567		-	community development corporation or a community based
	826	+	community development corporation and a community based
568	827		organization as a qualified contribution to the fund of the
569		-	community development corporation or the community based
	828	+	community development corporation and the community based
570	829		organization fund for the current state fiscal year, or permanently
571		-	set aside in a special account to be used solely for this fund.
572		-	SECTION 27. IC 6-3.1-18-10 IS AMENDED TO READ AS
573		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10. (a) The amount of
574		-	tax credits allowed under this chapter may not exceed two hundred
575		-	thousand dollars ($200,000) in any state fiscal year.
576		-	(b) The department shall:
577		-	(1) record the time of filing of each application for allowance of
578		-	a tax return claiming the credit required under section 9 of this
579		-	chapter; and
580		-	(2) approve the applications, credit, if they the business firm or
581		-	person claiming the credit otherwise qualify qualifies for a tax
582		-	credit under this chapter, in the chronological order in which the
583		-	applications are tax return claiming the credit is filed in the
584		-	state fiscal year.
585		-	(c) When the total credits approved under this section equal the
586		-	maximum amount allowable in any state fiscal year, an application
587		-	filed after that time for the no credits thereafter filed for that same
588		-	fiscal year may not shall be approved. However, if an applicant for
589		-	whom a credit has been approved fails to file the statement of proof of
590		-	payment required under section 9 of this chapter, an amount equal to
591		-	the credit previously allowed or set aside for the applicant may be
592		-	allowed to any subsequent applicant in the year. In addition, the
593		-	department may, if the applicant so requests, approve a credit
594		-	application, in whole or in part, with respect to the next succeeding
595		-	SEA 260 — CC 1 15
596		-	state fiscal year.
597		-	SEA 260 — CC 1 President of the Senate
598		-	President Pro Tempore
599		-	Speaker of the House of Representatives
600		-	Governor of the State of Indiana
601		-	Date: Time:
602		-	SEA 260 — CC 1
	830	+	set aside in a special account to be used solely for this fund.".
	831	+	Renumber all SECTIONS consecutively.
	832	+	(Reference is to SB 260 as printed January 31, 2024.)
	833	+	BALDWIN
	834	+	_____
	835	+	COMMITTEE REPORT
	836	+	Mr. Speaker: Your Committee on Ways and Means, to which was
	837	+	referred Senate Bill 260, has had the same under consideration and
	838	+	begs leave to report the same back to the House with the
	839	+	recommendation that said bill be amended as follows:
	840	+	Page 1, line 13, delete "and" and insert "or".
	841	+	ES 260—LS 6546/DI 129 21
	842	+	Page 2, line 2, delete "and" and insert "or".
	843	+	Page 2, line 42, delete "and" and insert "or".
	844	+	Page 3, line 26, delete "and" and insert "or".
	845	+	Page 3, line 32, delete "and" and insert "or".
	846	+	Page 4, line 17, delete "and" and insert "or".
	847	+	Page 4, line 25, delete "and" and insert "or".
	848	+	Page 5, line 25, delete "and" and insert "or".
	849	+	Page 5, line 26, after "corporation's" delete "and" and insert "or".
	850	+	Page 5, line 37, delete "and" and insert "or".
	851	+	Page 5, line 42, delete "and" and insert "or".
	852	+	Page 6, line 2, delete "and" and insert "or".
	853	+	Page 6, line 8, delete "and" and insert "or".
	854	+	Page 6, line 12, delete "and" and insert "or".
	855	+	Page 6, line 14, delete "and" and insert "or".
	856	+	Page 6, line 20, delete "and" and insert "or".
	857	+	Page 6, line 25, delete "and" and insert "or".
	858	+	Page 7, line 13, delete "and" and insert "or".
	859	+	Page 7, line 16, delete "and" and insert "or".
	860	+	Page 7, line 27, delete "and" and insert "or".
	861	+	Page 13, line 9, reset in roman "a".
	862	+	Page 13, line 9, delete "and" and insert "or".
	863	+	Page 13, line 20, delete "and" and insert "or".
	864	+	Page 13, line 38, delete "and" and insert "or".
	865	+	Page 14, line 20, delete "and" and insert "or".
	866	+	Page 14, line 22, delete "and" and insert "or".
	867	+	and when so amended that said bill do pass.
	868	+	(Reference is to SB 260 as reprinted February 2, 2024.)
	869	+	THOMPSON
	870	+	Committee Vote: yeas 21, nays 0.
	871	+	ES 260—LS 6546/DI 129